HUD's $80.4M contract for property management services awarded to A2Z Field Services LLC

Contract Overview

Contract Amount: $80,416,252 ($80.4M)

Contractor: A2Z Field Services LLC

Awarding Agency: Department of Housing and Urban Development

Start Date: 2010-06-01

End Date: 2016-10-19

Contract Duration: 2,332 days

Daily Burn Rate: $34.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FIELD SERVICE MANAGER (FSM) M&M III-CONTRACT AREA 2D-1

Place of Performance

Location: PLAIN CITY, UNION County, OHIO, 43064

State: Ohio Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $80.4 million to A2Z FIELD SERVICES LLC for work described as: FIELD SERVICE MANAGER (FSM) M&M III-CONTRACT AREA 2D-1 Key points: 1. The contract's value of $80.4 million over its duration suggests a significant investment in property management. 2. Awarded under full and open competition, this contract likely benefited from a competitive bidding process. 3. The firm-fixed-price contract type indicates that the price was set at the time of award, shifting risk to the contractor. 4. The contract duration of 2332 days (approximately 6.4 years) points to a long-term need for these services. 5. The North American Industry Classification System (NAICS) code 531311 for Residential Property Managers aligns with the contract's stated purpose. 6. The contract was awarded to A2Z Field Services LLC, with 12 bids received, suggesting a moderately competitive landscape.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The total award amount of $80.4 million over approximately 6.4 years averages to about $12.5 million annually. This figure needs to be assessed against the scope and scale of properties managed. The firm-fixed-price structure implies that the contractor assumed the risk for cost overruns, which can be a positive indicator of value if performance was satisfactory. However, without detailed performance reports or comparisons to similar contracts for managing residential properties of comparable size and complexity, a definitive value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. A total of 12 bids were received, indicating a healthy level of interest and competition for this requirement. A higher number of bidders generally suggests a more robust price discovery process and potentially better pricing for the government. The competitive nature of the procurement likely encouraged bidders to offer their most competitive terms and pricing to secure the contract.

Taxpayer Impact: The full and open competition with 12 bidders suggests that taxpayers likely benefited from a competitive pricing environment, potentially leading to cost savings compared to a sole-source or limited competition award.

Public Impact

Residents of HUD-managed properties in Ohio benefit from the services provided under this contract, ensuring proper maintenance and management. The contract supports the delivery of essential property management services, including maintenance, repairs, and tenant relations. The geographic impact is focused on Ohio, where the properties managed by A2Z Field Services LLC are located. The contract likely supports a workforce involved in property management, maintenance, and administrative roles within Ohio.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm-fixed-price contract did not adequately account for unforeseen maintenance or repair needs.
Risk of service quality degradation if contractor incentives are misaligned with performance expectations over the long contract duration.
Dependence on a single contractor for a significant period could limit flexibility in adapting to changing property management needs or technologies.

Positive Signals

The firm-fixed-price contract type shifts cost risk to the contractor, potentially protecting the government from unexpected price increases.
Awarding under full and open competition with multiple bids suggests a competitive process that likely drove favorable pricing.
The long contract duration indicates a stable, long-term relationship, which can foster efficiency and expertise in property management.

Sector Analysis

The residential property management sector is a critical component of the housing market, involving the oversight and maintenance of rental properties. Federal spending in this area, particularly by agencies like HUD, supports the management of government-owned or subsidized housing. This contract fits within the broader category of facilities support services. Comparable spending benchmarks would typically involve analyzing the cost per unit managed or the percentage of rental income allocated to management fees across similar portfolios.

Small Business Impact

There is no indication from the provided data that this contract included a small business set-aside. The contract was awarded to A2Z Field Services LLC, and information regarding subcontracting plans or performance with small businesses is not available. Without specific set-aside goals or reporting on subcontracting, the direct impact on the small business ecosystem is unclear, though larger contracts can sometimes provide opportunities for small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Housing and Urban Development (HUD). Accountability measures would be defined in the contract's terms and conditions, likely including performance standards, reporting requirements, and potential penalties for non-compliance. Transparency is generally facilitated through contract award databases, though detailed performance reviews and audits may not always be publicly accessible. The Inspector General for HUD would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

HUD Public and Indian Housing Programs
Federal Housing Administration (FHA) Programs
Government-wide Real Property Management

Risk Flags

Long contract duration may increase risk of performance degradation or obsolescence.
Firm-fixed-price contracts can sometimes lead to contractor cost-cutting if not adequately monitored.

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $80.4 million to A2Z FIELD SERVICES LLC. FIELD SERVICE MANAGER (FSM) M&M III-CONTRACT AREA 2D-1

Who is the contractor on this award?

The obligated recipient is A2Z FIELD SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of Housing and Urban Development (Department of Housing and Urban Development).

What is the total obligated amount?

The obligated amount is $80.4 million.

What is the period of performance?

Start: 2010-06-01. End: 2016-10-19.

What was the specific scope of services provided under this contract?

The contract, identified as 'FIELD SERVICE MANAGER (FSM) M&M III-CONTRACT AREA 2D-1', was awarded to A2Z FIELD SERVICES LLC by the Department of Housing and Urban Development (HUD). While the exact scope is not detailed in the provided data, the NAICS code 531311 ('Residential Property Managers') strongly indicates that the services involved the management of residential properties. This typically includes tasks such as rent collection, property maintenance and repairs, tenant relations, lease administration, and ensuring compliance with housing regulations. The contract's duration of over six years and its substantial value suggest a comprehensive management role for a portfolio of HUD-related residential properties, likely within the state of Ohio given the 'OH' and 'OHIO' fields.

How does the awarded amount compare to similar property management contracts?

Comparing the $80.4 million award to similar contracts is difficult without access to a comprehensive database of federal property management contracts with detailed scopes and performance metrics. However, the average annual value of this contract is approximately $12.5 million ($80.4M / 6.4 years). This figure needs to be contextualized by the number and type of properties managed, their geographic distribution, and the specific services required. For instance, managing a large portfolio of distressed or subsidized housing might have different cost structures than managing market-rate federal properties. Without such comparative data, it's challenging to definitively state whether this represents a high, low, or average cost for the services rendered.

What were the key performance indicators (KPIs) or service level agreements (SLAs) for this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) associated with this contract. Typically, for residential property management contracts, KPIs might include metrics such as response times for maintenance requests, tenant satisfaction rates, property vacancy rates, timely rent collection, and compliance with safety and housing codes. Service Level Agreements would define the expected standards for these metrics. The firm-fixed-price nature of the contract suggests that performance standards were likely established, and failure to meet them could result in penalties or contract termination, but these specifics are not detailed in the summary data.

What is the track record of A2Z Field Services LLC with federal contracts?

The provided data indicates that A2Z Field Services LLC was awarded this specific contract by the Department of Housing and Urban Development (HUD). However, it does not offer details about the company's broader track record with federal contracts, such as past performance ratings, other contract awards, or any history of disputes or terminations. To assess their track record, one would need to consult federal procurement databases like SAM.gov or FPDS-NG for a more comprehensive history of their federal contracting activities, including performance evaluations and any past issues.

Were there any significant risks identified during the procurement or execution of this contract?

The provided data does not explicitly list identified risks for this contract. However, general risks associated with long-term, firm-fixed-price contracts for property management could include potential contractor underperformance if incentives are not well-aligned, unforeseen increases in maintenance or repair costs that strain the fixed price, or challenges in adapting to evolving property management needs over the contract's 6.4-year duration. The fact that it was competed fully and openly suggests that the agency sought to mitigate risks through competition, but specific risk assessments conducted by HUD are not detailed here.

How has federal spending on residential property management evolved over time, and where does this contract fit?

Federal spending on residential property management, particularly by agencies like HUD, is influenced by the size and nature of the federal housing portfolio, including public housing, affordable housing initiatives, and foreclosed properties. This $80.4 million contract awarded in 2010 for services through 2016 represents a significant, multi-year investment in managing a specific set of residential properties. Without broader historical spending data on property management services across HUD or other agencies, it's difficult to place this contract within a precise trend. However, such contracts are essential for maintaining the operational integrity and habitability of federally owned or supported housing stock.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Activities Related to Real Estate › Residential Property Managers

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 12

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7450 INDUSTRIAL PKWY STE 105, PLAIN CITY, OH, 43064

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $100,529,290

Exercised Options: $100,529,290

Current Obligation: $80,416,252

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline